Leases

12 Months Ended

Dec. 31, 2023

Leases [Abstract]

Leases

LEASES

    The Partnership has numerous operating leases primarily for terminal facilities and transportation and other equipment. The leases generally provide that all expenses related to the equipment are to be paid by the lessee.

    Operating lease right of use ("ROU") assets and operating lease liabilities are recognized based on the present value of lease payments over the lease term at commencement date. Because most of the Partnership's leases do not provide an implicit rate of return, the Partnership uses its imputed collateralized rate based on the information available at commencement date in determining the present value of lease payments. The estimated rate is based on a risk-free rate plus a risk-adjusted margin.

The Partnership's leases have remaining lease terms of 1 year to 13 years, some of which include options to extend the leases for up to 5 years, and some of which include options to terminate the leases within 1 year. The Partnership includes extension periods and excludes termination periods from its lease term if, at commencement, it is reasonably likely that the Partnership will exercise the option.

    The components of lease expense for the years ended December 31, 2023, 2022, and 2021 were as follows:

	2023		2022		2021
Operating lease cost	$	16,198	$	10,752	$	9,266
Finance lease cost:
Amortization of right-of-use assets	6		92		164
Interest on lease liabilities	—		9		26
Short-term lease cost	5,415		11,546		10,290
Variable lease cost	191		185		115
Total lease cost	$	21,810	$	22,584	$	19,861

    Supplemental cash flow information for the years ended December 31, 2023, 2022, and 2021 related to leases were as follows:

	2023		2022		2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	29,820	$	20,153	$	19,678
Operating cash flows from finance leases	—		9		26
Financing cash flows from finance leases	9		279		2,707
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	38,935	$	22,433	$	7,668
Finance leases	—		—		83

    

Supplemental balance sheet information related to leases was as follows at December 31, 2023 and 2022:

	2023			2022
Operating Leases
Operating lease right-of-use assets	$	60,359		$	34,963
Current portion of operating lease liabilities included in "Other accrued liabilities"	$	14,901		$	9,084
Operating lease liabilities	45,684			26,268
Total operating lease liabilities	$	60,585		$	35,352
Finance Leases
Property, plant and equipment, at cost	$	—		$	83
Accumulated depreciation	—			(44)
Property, plant and equipment, net	$	—		$	39
Current installments of finance lease obligations	$	—		$	9
Finance lease obligations	$	—		0
Total finance lease obligations	$	—		$	9
Weighted Average Remaining Lease Term (years)
Operating leases	4.72			5.74
Finance leases	—			0.41
Weighted Average Discount Rate
Operating leases	6.56		%	5.24		%
Finance leases	—			3.61		%

    The Partnership’s future minimum lease obligations as of December 31, 2023 consist of the following:

	Operating Leases		Finance Leases
Year 1	$	18,345	$	—
Year 2	16,740		—
Year 3	13,802		—
Year 4	10,515		—
Year 5	5,219		—
Thereafter	5,433		—
Total	70,054		—
Less amounts representing interest costs	(9,469)		—
Total lease liability	$	60,585	$	—

    As of December 31, 2023, the Partnership did not have any operating leases that have not yet commenced.

The Partnership has non-cancelable revenue arrangements that are under the scope of ASC 842 whereby we have committed certain terminalling and storage assets in exchange for a minimum fee. Future minimum revenues the Partnership expects to receive under these non-cancelable arrangements as of December 31, 2023 are as follows: 2024 - $22,275; 2025 - $16,333; 2026 - $11,741; 2027 - $11,552; 2028 - $11,364; subsequent years - $18,256.

Leases

LEASES

    The Partnership has numerous operating leases primarily for terminal facilities and transportation and other equipment. The leases generally provide that all expenses related to the equipment are to be paid by the lessee.

    Operating lease right of use ("ROU") assets and operating lease liabilities are recognized based on the present value of lease payments over the lease term at commencement date. Because most of the Partnership's leases do not provide an implicit rate of return, the Partnership uses its imputed collateralized rate based on the information available at commencement date in determining the present value of lease payments. The estimated rate is based on a risk-free rate plus a risk-adjusted margin.

The Partnership's leases have remaining lease terms of 1 year to 13 years, some of which include options to extend the leases for up to 5 years, and some of which include options to terminate the leases within 1 year. The Partnership includes extension periods and excludes termination periods from its lease term if, at commencement, it is reasonably likely that the Partnership will exercise the option.

    The components of lease expense for the years ended December 31, 2023, 2022, and 2021 were as follows:

	2023		2022		2021
Operating lease cost	$	16,198	$	10,752	$	9,266
Finance lease cost:
Amortization of right-of-use assets	6		92		164
Interest on lease liabilities	—		9		26
Short-term lease cost	5,415		11,546		10,290
Variable lease cost	191		185		115
Total lease cost	$	21,810	$	22,584	$	19,861

    Supplemental cash flow information for the years ended December 31, 2023, 2022, and 2021 related to leases were as follows:

	2023		2022		2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	29,820	$	20,153	$	19,678
Operating cash flows from finance leases	—		9		26
Financing cash flows from finance leases	9		279		2,707
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	38,935	$	22,433	$	7,668
Finance leases	—		—		83

    

Supplemental balance sheet information related to leases was as follows at December 31, 2023 and 2022:

	2023			2022
Operating Leases
Operating lease right-of-use assets	$	60,359		$	34,963
Current portion of operating lease liabilities included in "Other accrued liabilities"	$	14,901		$	9,084
Operating lease liabilities	45,684			26,268
Total operating lease liabilities	$	60,585		$	35,352
Finance Leases
Property, plant and equipment, at cost	$	—		$	83
Accumulated depreciation	—			(44)
Property, plant and equipment, net	$	—		$	39
Current installments of finance lease obligations	$	—		$	9
Finance lease obligations	$	—		0
Total finance lease obligations	$	—		$	9
Weighted Average Remaining Lease Term (years)
Operating leases	4.72			5.74
Finance leases	—			0.41
Weighted Average Discount Rate
Operating leases	6.56		%	5.24		%
Finance leases	—			3.61		%

    The Partnership’s future minimum lease obligations as of December 31, 2023 consist of the following:

	Operating Leases		Finance Leases
Year 1	$	18,345	$	—
Year 2	16,740		—
Year 3	13,802		—
Year 4	10,515		—
Year 5	5,219		—
Thereafter	5,433		—
Total	70,054		—
Less amounts representing interest costs	(9,469)		—
Total lease liability	$	60,585	$	—

    As of December 31, 2023, the Partnership did not have any operating leases that have not yet commenced.

The Partnership has non-cancelable revenue arrangements that are under the scope of ASC 842 whereby we have committed certain terminalling and storage assets in exchange for a minimum fee. Future minimum revenues the Partnership expects to receive under these non-cancelable arrangements as of December 31, 2023 are as follows: 2024 - $22,275; 2025 - $16,333; 2026 - $11,741; 2027 - $11,552; 2028 - $11,364; subsequent years - $18,256.

Leases

LEASES

    The Partnership has numerous operating leases primarily for terminal facilities and transportation and other equipment. The leases generally provide that all expenses related to the equipment are to be paid by the lessee.

    Operating lease right of use ("ROU") assets and operating lease liabilities are recognized based on the present value of lease payments over the lease term at commencement date. Because most of the Partnership's leases do not provide an implicit rate of return, the Partnership uses its imputed collateralized rate based on the information available at commencement date in determining the present value of lease payments. The estimated rate is based on a risk-free rate plus a risk-adjusted margin.

The Partnership's leases have remaining lease terms of 1 year to 13 years, some of which include options to extend the leases for up to 5 years, and some of which include options to terminate the leases within 1 year. The Partnership includes extension periods and excludes termination periods from its lease term if, at commencement, it is reasonably likely that the Partnership will exercise the option.

    The components of lease expense for the years ended December 31, 2023, 2022, and 2021 were as follows:

	2023		2022		2021
Operating lease cost	$	16,198	$	10,752	$	9,266
Finance lease cost:
Amortization of right-of-use assets	6		92		164
Interest on lease liabilities	—		9		26
Short-term lease cost	5,415		11,546		10,290
Variable lease cost	191		185		115
Total lease cost	$	21,810	$	22,584	$	19,861

    Supplemental cash flow information for the years ended December 31, 2023, 2022, and 2021 related to leases were as follows:

	2023		2022		2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	29,820	$	20,153	$	19,678
Operating cash flows from finance leases	—		9		26
Financing cash flows from finance leases	9		279		2,707
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	38,935	$	22,433	$	7,668
Finance leases	—		—		83

    

Supplemental balance sheet information related to leases was as follows at December 31, 2023 and 2022:

	2023			2022
Operating Leases
Operating lease right-of-use assets	$	60,359		$	34,963
Current portion of operating lease liabilities included in "Other accrued liabilities"	$	14,901		$	9,084
Operating lease liabilities	45,684			26,268
Total operating lease liabilities	$	60,585		$	35,352
Finance Leases
Property, plant and equipment, at cost	$	—		$	83
Accumulated depreciation	—			(44)
Property, plant and equipment, net	$	—		$	39
Current installments of finance lease obligations	$	—		$	9
Finance lease obligations	$	—		0
Total finance lease obligations	$	—		$	9
Weighted Average Remaining Lease Term (years)
Operating leases	4.72			5.74
Finance leases	—			0.41
Weighted Average Discount Rate
Operating leases	6.56		%	5.24		%
Finance leases	—			3.61		%

    The Partnership’s future minimum lease obligations as of December 31, 2023 consist of the following:

	Operating Leases		Finance Leases
Year 1	$	18,345	$	—
Year 2	16,740		—
Year 3	13,802		—
Year 4	10,515		—
Year 5	5,219		—
Thereafter	5,433		—
Total	70,054		—
Less amounts representing interest costs	(9,469)		—
Total lease liability	$	60,585	$	—

    As of December 31, 2023, the Partnership did not have any operating leases that have not yet commenced.

The Partnership has non-cancelable revenue arrangements that are under the scope of ASC 842 whereby we have committed certain terminalling and storage assets in exchange for a minimum fee. Future minimum revenues the Partnership expects to receive under these non-cancelable arrangements as of December 31, 2023 are as follows: 2024 - $22,275; 2025 - $16,333; 2026 - $11,741; 2027 - $11,552; 2028 - $11,364; subsequent years - $18,256.